What are Stripe Connect fees?
Stripe Connect charges two main fees when you process payments: a standard payment processing fee of 2.9% plus $0.30 per transaction, plus a Connect fee of 1% that goes to the platform facilitating the payment. Here's what this means for your invoicing workflow.
The two-fee structure Stripe charges
When a customer pays a Stripe-powered invoice, two fees stack on top of each other. First is the standard payment processing fee: 2.9% of the transaction plus $0.30. So on a $1,000 invoice, that's $29.30. Second is the Connect fee: 1% of that same $1,000, or $10. Total friction: $39.30, or 3.93% off that invoice. This happens whether your customer pays from their phone or desktop. The fees apply to all card payments—credit, debit, business cards. ACH transfers have a lower fee structure, but that's controlled by your payment processor, not Stripe directly.
Why the Connect fee exists
Stripe Connect is an infrastructure layer that lets third-party apps (like your invoicing software or CRM) process payments on your behalf without you building your own payment system. That 1% is Stripe's cut for running that backend. It's not going to the app provider—it's Stripe's fee for the platform itself. Different payment processors structure this differently. Some charge a single combined rate. Stripe splits it out so you see exactly what's happening. Some contractors prefer this transparency. Others find it confusing. Either way, the total cost is what matters for your bottom line.
How this affects your cash flow
On smaller jobs, the fees add up fast. A $500 invoice costs $19.65 in Stripe fees. A $2,000 invoice costs $78.60. Most contractors accept this trade-off because the alternative—chasing checks or cash payments—costs time instead of money. Stripe deposits funds into your account within 1-2 business days by default (same-day deposits are available for an additional fee). Compare this to waiting 7-10 days for a mailed check. If you're invoicing consistently, the speed usually justifies the percentage.
Ways to reduce the impact
Offer ACH payments when possible. Stripe's ACH fee is $0.80 flat, which beats any percentage-based fee on invoices over $28. Your customers enter their bank details once and can pay directly from their account. Not every customer will switch, but enough might to move the needle. Another approach: send digital invoices to repeat clients with a clear payment deadline. Faster payment cycles mean better cash flow regardless of fees. Some contractors build the Stripe fee into their estimates—essentially passing it to jobs paid digitally—and offer a discount for cash or check payment. Whatever you choose, know the numbers so you decide intentionally.
Bottom line
Stripe Connect costs 3.9% total per card transaction. Calculate whether that's worth the speed of digital payment for your operation—for most service contractors, it is.